Should I quit my job to buy a business? Facing the fear

The question: An accountant, a few years into a steady corporate job, has the chance to buy a firm from an owner who is retiring. It’s his dream of becoming his own boss, but he’s scared to leave the security he knows.

Two kinds of fear

Your fear makes sense, and I’d split it into two parts.

One part is just discomfort. Corporate has been your comfort zone, and leaving any comfort zone feels scary. That part is normal.

The other part is real concern, and it deserves clear answers before you jump. I’d look at three things.

1. Can you run the whole business?

Every business stands on three legs:

• The numbers. Accounting, making sure the money is in order. This is your strength.
• Operations. Actually delivering the service, done right, so clients are happy.
• Sales and marketing. Bringing in clients, and the right clients for you.

You’ve proven yourself on the first leg. Can you do the other two? If not, can you bring in someone who can, pay them, and manage them? Some numbers people turn out to be very good managers, and some don’t. Be honest with yourself about which you are.

2. Can you carry the money side?

A new owner often waits a while, sometimes years, before seeing real profit. Ask yourself:

• Can you take on the challenge of paying everyone, and every bill, even when there’s no profit in the account yet?
• Is that the kind of pressure that would give you sleepless nights?
• How will you live until the firm pays you? Do you have another income, or money put aside to get through the first few years?

3. Does this firm really make money?

• How does it make its profit? What are the running costs, and what’s left after them?
• Why is the owner selling? Retiring may be the whole story, or not.
• Did the firm run because it’s a real system, or because the owner did everything himself? If it’s a system, you step in and upgrade it. If it was all him, the business may walk out the door with him.

Once you’re clear on these three, most of the fear usually goes. Clarity is strength. And if a little fear is still there, you’ll usually find the courage to step out of your comfort zone and do it anyway.